The goods and services tax collection dipped in May because of restrictions imposed by states to curb the second wave of Covid-19 infections. However, it managed to hold on to the Rs 1-lakh-crore mark for the eighth month in a row.

The tax collection for May stood at Rs 1,02,709 crore, slipping from a record high of Rs 1.41 lakh crore in April 2021, according to data released by the ministry of finance on Saturday.

“As expected, May 2021 GST collections have shown moderation as was predicted by the sequential slowdown in e-way bills between March and April. With the extension and widening of restrictions by various states in May, the

e-way bills have declined further, which will dampen the GST collections in the month of June,” Aditi Nayar, chief economist of Icra, said.

The May 2021 collection is 65 per cent higher than the Rs 62,009-`crore tax revenue of May 2020. Collections last year were impacted as economic activity took a hit because of the nationwide lockdown imposed to check the spread of Covid-19.

“The gross GST revenue collected in the month of May 2021 is Rs 1,02,709 crore of which CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and cess is Rs 9,265 crore (including Rs 868 crore collected on the import of goods),” the finance ministry said in a statement.

M.S. Mani, senior director, Deloitte India, said: “Collections above Rs 1 lakh crore in April 2021 indicate that the economic impact of the restrictions has been much lower than expected. A close watch is required on the next month’s collections to determine the extent of the impact on GST collections in FY22.”

Rajat Bose, partner at Shardul Amarchand Mangaldas & Co, said : “As most of the businesses were not functioning in April because of the lockdown, the numbers come as a pleasant surprise.

“The numbers should rise further considering that many small businesses are yet to file their returns because of the Covid-related relaxations extended by the government for such businesses.”

Abhishek Jain, tax partner at EY, said: “The Rs 1.02-lakh-crore GST collections for the month of May will rise further as businesses with less than Rs 5 crore turnover have until the first week of July to file returns.”